Inflation seems to be kicking off in the USA, according to the news. I expect that this will cause the Fed to increase interest rates, which will cause the USD to increase in value as currency traders flock to benefit. This could be good for companies selling to the USA and converting their currency back to NZDs, and other companies that benefit from a strong USD.
Of course that’s not to say that any company that trades in USDs will automatically be a good investment or that it will be correctly priced for a purchase.
Can you think of any companies on the ASX or NZX that could benefit from a strong USD? Please mention them in the comments below.